Cramer's Stop Trading! Get Out of Financials (4/25/11)

Includes: ABX, JPM, PNC, PVH, RL, VFC
by: Miriam Metzinger

Stocks discussed on Jim Cramer's Stop Trading! TV segment, Monday April 25.

JPMorgan (NYSE:JPM), PNC Financial Services Group (NYSE:PNC), VFCorp (NYSE:VFC), Ralph Lauren (NYSE:RL), Phillips Van Heusen (NYSE:PVH), Barrick Gold (NYSE:ABX),

With banks up slightly on a respite from the endless bashing of financials, Cramer would take gains. The sector is far too vulnerable to savaging from Washington, and while some banks, such as JPMorgan (JPM) and PNC Financial (PNC) are performing well, it is best to stay away from financials.

Certain retail stocks, such as VFCorp (VFC), Ralph Lauren (RL) and Phillips Van Heusen (PVH) are not up because there is a peak in cotton prices, but because these particular retailers have enough pricing power, thanks to the popularity of their brands, to raise prices to a level that is ahead of rising cotton prices. Even though raw costs remain high, the earnings of these companies are terrific.

Barrick's (ABX) move to diversify into copper is not a sign that gold is topping. Barrick is "one of the best-run mining companies," and if management is diversifying, the move must be right. While there could be temporary weakness in the stock, Cramer believes in Barrick Gold.


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